Negotiation Strategies- For Buying Real Estate

Buying?

Gosh! Working through the negotiation strategies sometimes feels like you’re in a frustration dual vs logically working through the process based. The struggle between facts and emotions is frustrating if you don’t have a plan. Creating the Purchase Agreement is only the 1st step in the negotiating process. Once the all parties sign the agreement, there are a few more steps that may come in to play. One is the possibility negotiations after the home inspection, the other could be the appraisal.

Balancing Both Relationship and Substance

It’s important to understand to have a favorable outcome in your negotiation process, relationship and substance occur simultaneously. Let’s say we start of the negotiations with a series of offers and counter offers. Eventually this process results in an agreement and agrees on price and terms. The terms of the agreement, is the substance of the negotiation process. During the process of defining the terms of the agreement, buyer and sellers develop a feeling about one another. This feeling can either be favorable or unfavorable. These feelings everyone is having towards the transaction is the relationship. Is it a good relationship, one that needs work or did everyone get off on the wrong foot?

Preparing Yourself to Negotiate

To overcome “Form Phobia”, I recommend before you sign a buyer agency contract review the real estate documents in advance and ask questions right away. Don’t wait until you have found a home you want to buy. You want to feel comfortable with the legal documents and an understanding what your signing and why. This will help you keep a clear sense of reality, and not feel overwhelmed with the process. The goal is knowing you are making the best decision on moving forward base on facts. Determining your flexibility will help you stay focus on the goal you are trying to meet.

Know up front the Negotiating Guidelines that your Realtor follows

Make sure you discuss and have a plan about adequate preparations. An agent should spend at least the same amount of time preparing the documents as it does for you to check them. I recommend doing this in advance, like a trial run if you will, so you are comfortable with the process. This will also define your communication process with your agent, and prospective seller. To have an effective negotiation will depend upon you and the seller maintaining effective communications. If you don’t prepare in advance you are worrying about substance and neglecting the relationship.

Adding Emotions to the Negotiation Process

Yes, everyone does respond differently to the negotiation process. It’s important to respond logically based on facts and not react emotionally. I find this is prevalent when we start the negotiation after the home inspection. That’s why I recommend having excellent reports about issues that have come up during the inspection. Without an excellent report and communicating the fact to the seller can make or break the sale moving forward. My job as your agent is to put in the best situation when it comes to negotiation strategies. I constantly read to improve my negotiation strategies and found this article in the Huntington Post an interesting read. “10 Tips for Strategically Negotiate Real Estate”

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